Slide 1: Third Quarter 2024 Financial Results
Third Quarter 2024 Financial Results November 6, 2024 © Copyright 2024 Certara, L.P. All rights reserved.
Slide 2: Disclaimer
Disclaimer Numerical figures in the presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables may not be arithmetic aggregations of the figures that precede them. In addition, unless otherwise indicated, references to the “Company,” “Cer
Slide 3: Certara at a Glance
Certara at a Glance BUSINESS END-TO-END PLATFORM CUSTOMERS(3) 3Q 2024 FINANCIALS Software 20+ Year ~2,400 $94.8M Revenue • Biosimulation Customers across History of innovation • Regulatory & compliance 66 countries 11% GAAP YoY Growth • Market access 10% CC YoY Growth(4) ~1,400 Employees(1) 10+ Year
Slide 4: Financial Highlights
Financial Highlights Third Quarter 2024 Adjusted Revenue Net Income Adj. EBITDA(3) Diluted EPS Diluted EPS(4) $94.8M ($1.4M) $33.1M ($0.01) $0.13 11% GAAP YoY change PY ($47.4M)(2) 15% YoY PY ($0.31) PY $0.11 10% CC YoY change (1) change (1) See Appendix for reconciliation of GAAP revenue to constan
Slide 5: 3Q 2024 Results - Revenue
3Q 2024 Results - Revenue GAAP Reported Revenue Constant Currency Revenue(1) ($Millions) ($Millions) 94.8 94.3 85.6 85.6 58.9 58.7 54.2 54.2 31.3 35.9 31.3 35.6 3Q 2023 3Q 2024 3Q 2023 3Q 2024 Software Services Software Services Certara reported 10% constant currency(1) revenue growth (1) See Append
Slide 6: 3Q and TTM Results - Net Bookings
3Q and TTM Results - Net Bookings 3Q Reported Net Bookings TTM Reported Net Bookings ($Millions) ($Millions) 84.8 96.1 403.8 419.7 61.3 266.7 57.6 270.7 27.2 34.8 133.2 153.0 3Q 2023 3Q 2024 3Q 2023 3Q 2024 Software Services Software Services Trailing twelve months bookings are highly correlated wit
Slide 7: Historical TTM Book to Bill
Historical TTM Book to Bill ($Millions) 1.14x 1.14x 1.12x 1.13x 1.10x 403.8 402.3 395.4 408.4 419.7 353.0 354.3 360.3 363.6 372.8 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 TTM Bookings TTM Revenue Book to Bill Book to bill provides forward visibility into revenue growth © Copyright 2024 Certara, L.P.
Slide 8: Historical Software Net Retention Rate (NRR)
Historical Software Net Retention Rate (NRR)(1) NRR(1) provides insight into growth and retention among existing software customers (1) Our net retention rates measure the percentage of recurring revenue that is retained from existing software customers over a specific time period, inclusive of pric
Slide 9: 3Q 2024 Results – Adjusted EBITDA
3Q 2024 Results – Adjusted EBITDA Adjusted EBITDA(1) 33.1 28.8 3Q 2023 3Q 2024 34% Adjusted EBITDA Margin(1) 35% (1) See Appendix for a reconciliation net income (loss) to adjusted EBITDA © Copyright 2024 Certara, L.P. All rights reserved.
Slide 10: 3Q24 Business Updates
3Q24 Business Updates Key Takeaways from Third Quarter Performance: Strong Performance in Software Business Chemaxon Acquisition Biosimulation Evolution Expands Certara’s Offering • Launched version 8.5 of Phoenix, • Closed the acquisition of Chemaxon on • Solid biosimulation Software performance in
Slide 11: 3Q24 Bookings YoY Trends – Pharma/Biotech Customers
3Q24 Bookings YoY Trends – Pharma/Biotech Customers (1) Tier Software Bookings | +28% y/y Services Bookings | +6% y/y I Strong growth y/y driven by expansion among existing customers, biosimulation adoption Declined due to weakness in regulatory services, offset by strength in biosimulation Stronges
Slide 12: 2024 Outlook
2024 Outlook Updated FY 2024 guidance Key Assumptions 2024 Guidance • Reported revenue growth of 6-7% ex-Chemaxon Adjusted Adjusted • Fully diluted shares expected Revenue EBITDA (1) Diluted EPS(1) to be in the range of 160- 162 $380-$385M $120-$124M $0.41-$0.44 • Tax rate expected to be 25- 30% Thi
Slide 13: Appendix
Appendix © Copyright 2024 Certara, L.P. All rights reserved.
Slide 14: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA © Copyright 2024 Certara, L.P. All rights reserved. 14
Slide 15: Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30, 2024 2023 2024 2023 (in thousands) Net income (loss) (a) $(1,371) $(48,965) $(18,628) $(42,901) Currency (gain) loss(a) 1,546 (2,179) 2,526 (165) Equity-based compensati
Slide 16: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share 16 © Copyright 2024 Certara, L.P. All rights reserved.
Slide 17: Reconciliation of Revenues to Revenues Adjusted for Constant Currency
Reconciliation of Revenues to the Revenues Adjusted for Constant Currency THREE MONTHS ENDED SEPTEMBER 30, Change 2024 2024 2023 $ % $ % Actual CC Actual Actual Actual CC Impact Adjust for CC (GAAP) (non-GAAP) (GAAP) (GAAP) (GAAP) (non-GAAP) (non-GAAP) (in thousands except percentage) Revenue Softwa
Slide 18: Notes to Reconciliations
Notes to Reconciliations (a) Represents amounts as determined under GAAP. (b) Represents expense related to equity-based compensation. Equity-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation
Slide 19: Accelerating Medicines, Together
Accelerating Medicines, Together © Copyright 2024 Certara, L.P. All rights reserved.